Source · Select Committees · Public Accounts Committee

Recommendation 14

14 Deferred

Ombudsman services lack statutory jurisdiction to investigate key 1996 government information in AEAT case.

Conclusion
In the case of the AEAT pension scheme, relevant ombudsman services said they were unable to properly investigate key aspects of scheme members complaints.27 Some aspects of the case could be reviewed. For example, GAD described to us how complaints about work done by individual actuaries who are members of the actuarial profession can be raised through disciplinary and complaints processes of the Institute and Faculty of Actuaries and the Financial Reporting Council.28 The Pensions Ombudsman reviewed the approach taken by scheme trustees when the company went into administration in 2012, and PHSO examined DWP’s 2013 factsheet for scheme members.29 But none of these organisations has examined the information that government provided in 1996, with the ombudsman services saying it is outside their statutory jurisdictions.30
Government Response Summary
The government agrees with the recommendation and will conduct an independent review of The Pensions Ombudsman in Autumn 2024, noting the department can request consideration of other relevant areas during this review.
Government Response Deferred
HM Government Deferred
3.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2024. 3.2 The Pensions Ombudsman (TPO) is scheduled to have its independent arm’s-length body (ALB) review in 2024, as part of the Cabinet Office review programme and in accordance with the Partnership Code of Good Practice. The aim of the review is to provide a robust challenge on the governance, accountability, efficacy, and efficiency of the ALB. The department can, in addition, request that the independent reviewer considers other areas that would benefit from their consideration. The review will be led by an independent reviewer appointed by the Secretary of State for Work and Pensions. The reviewer will report to the Secretary of State and be supported during the Review process by the department. 3.3 TPO currently has significant powers to deal with complaints of maladministration and disputes of fact or law. TPO’s current time limits give the Ombudsman a wide level of discretion, subject to the Limitation Act 1980 restrictions. It should be noted that the Limitation Act 1980 is distinct from TPO’s own time limit statutory framework and affects all types of civil proceedings, not just those that relate to pensions.